“One study actually found that a number of millennials are taking on retirement portfolios that look a lot more appropriate for people who are nearing retirement,” he adds.Veteran personal finance writer and author of the bestseller, Get a Financial Life: Personal Finance In Your Twenties and Thirties, Beth Kobliner, has two hard and fast rules for managing your money as a 20-something:
"But if you do find yourself slipping into the trenches of debt after an ill-advised shopping spree (or three) or an unexpected medical emergency that your savings wasn't equipped to cover, pay it off as soon as possible,” says Kobliner. Regarding saving for retirement, she says, “You don't even have to contribute a ton of money, because as long as you start early, compound interest will take over.”According to David Bach, bestselling author of The Automatic Millionaire, the real key to saving is the percentage of your income that you pay yourself first. In your twenties, Bach recommends contributing 10% of your gross income to retirement savings. Bach also explains that emergency savings goals change in each decade and should double every 10 years as your cost of living goes up. In your twenties, this should be three months worth of living expenses.
Wells: “Life sort of gets in the way and people forget to make the appropriate adjustments.”
“The real mistake here is when people start withdrawing from their retirement savings to feed the sandwich,” says Wells.
Wells: “Your ability to make decisions is going to decline. Before that happens, delegate your financial decisions to a trusted family member or advisor. And make sure you’ve got things written down."